Buying After a Short Sale About to Get Easier
Effective November 16, Fannie Mae will correct the way it reports short sales to credit bureaus. Currently, short sales are erroneously reported as “foreclosures” which means that would be buyers that had a short sale with a Fannie Mae loan have had to wait 7 years to buy again. With the new fix, all misreported short sales will now show on credit reports as a short sale, not a foreclosure. This means that buyers wishing to purchase a home with a loan will be able to qualify after 2 years with 20% down or 4 years with 5-15% down.
Following Fannie Mae’s reprogramming of the software glitch, lenders will also have a code that allows them to specify on the loan application whether the sale was a short sale or deed-in-lieu of foreclosure. It is likely that FHA and VA will have a similar fix in place by year’s end.
If you’re ready to buy in San Diego County please give us a call! We can also provide referrals to some great lenders who will make sure you have a solid pre-approval for your loan.
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